Retirement is undoubtedly a major turning point in our lives. Besides reminding you about getting older, it does put certain financial restrictions on you.
Reduced monthly income is one of the major problems faced by many retired individuals. In such a case, it can become difficult to manage monthly expenses & property maintenance issues.

So how can equity release schemes help?
Equity release schemes are specially designed for senior citizens particularly those aged 55 & over. By opting for equity release, retired individuals can get access to a lump sum or regular monthly income or even a combination of both from their property.
Moreover, an equity release scheme also allows you to continue residing in your home with no further monthly payments required. This is an important difference from any residential mortgage, as you cannot default on the monthly payments & thus risk having your house repossessed. It therefore alleviates any concerns of affecting your credit history & finding the cash to pay the mortgage which was probably the biggest financial & possibly stressful commitment during your working life!

The most popular type of equity release schemes are lifetime mortgages. Here ownership of your property remains solely in your name at the land registry, with no transfer of ownership. This provides you with the peace of mind of knowing that any alterations & improvements can be actioned with minimal fuss & confidence.

Equity release is the can therefore be a great option for retired homeowners to release tax free cash from their property. Equity release plans are basically classed as a release of capital from your property; hence there is no tax to pay on the initial release from the provider. Consequently, your money can go further & can be used for paying off the mortgage, buying a new car, going on holiday, debt consolidation or for any other purpose. Equity release companies do not place any restrictions of how the funds are utilised.

To suit individual needs, different equity release schemes are available. These include home reversion, lifetime mortgages & pensioner interest only mortgages. Prior to opting for equity release, ensure that you do thorough research on the terms and conditions of the different loans open to you.
Taking independent professional advice would be a wise decision. Based on your preferences and needs, professionals can advise you about the best equity release option & save many £1000’s over the long term; ultimately benefitting your children.